A small amount of caprolactam business was also reported at a drop of Euro80/tonne, while a few deals were heard at a drop of Euro110-120/tonne.

The caprolactam settlements followed two benzene contract deals reported on 30 November at Euro490/tonne FOB (free on board) NWE and Euro492/tonne FOB NWE, down Euro85-87/tonne from November.

Caprolactam customers said they had targeted a greater reduction than on benzene in order to make up for margin lost throughout the year. Suppliers had originally hoped to achieve a rollover, but due to greater than expected falls on benzene, they admitted that this was not possible.

Buyers said they hoped to regain further margins in January, 2006, but some anticipated price increases later on in Q1, 2006, especially if the Asian market improved. Producers said they hoped to push through price hikes in Q1.